Japan Display's banks also are considering additional support for the company, the Journal reported. No final decision has been made yet, according to the report.

INCJ was not immediately available for comment and Japan Display could not be immediately reached.

Japan Display said on Wednesday it was slashing 30 percent of its workforce, or 4,700 jobs, to improve profitability but added that concerns about its cash position have eased as it is seeing strong demand for its screens from Chinese smartphone makers.

The firm faced a funding crunch earlier this year and took out short-term loans from lenders due to slower iPhones-related demand from Apple Inc, whose products account for more than half of Japan Display's sales.

Japan Display was formed in 2012 by combining the display units of Hitachi Ltd , Sony Corp and Toshiba Corp.